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4. Mahjong, Inc. has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$43,000 -$43,000 1 23,000 7,000 2
4. Mahjong, Inc. has identified the following two mutually exclusive projects:
Year | Cash Flow (A) | Cash Flow (B) |
0 | -$43,000 | -$43,000 |
1 | 23,000 | 7,000 |
2 | 17,900 | 13,800 |
3 | 12,400 | 24,000 |
4 | 9,400 | 26,000 |
NPV | ??? | ??? |
If you require a return of 11 percent, what is the NPV of each project?
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